Definition
NABARD stands for National Bank for Agriculture and Rural Development. It is an institution based in India that is responsible for providing and regulating finances and credit in rural areas. It was established to promote sustainable and equitable agriculture and rural prosperity through effective credit support and other innovative initiatives.
Key Takeaways
- The full form of NABARD is the National Bank for Agriculture and Rural Development. It’s an apex development organisation established by the Indian government.
- NABARD is primarily responsible for regulation and policy planning in the agricultural and rural development areas. It aims to uplift and develop the rural parts of India through financial assistance.
- Along with direct funding and creating schemes for agricultural development, NABARD also has a role in the development of small-scale industries, cottage industries, and handicrafts in rural areas.
Importance
NABARD stands for National Bank for Agriculture and Rural Development.
It’s a significant finance term as this institution plays a pivotal role in the rural development of India.
Established by the Indian government, its primary purpose is to implement comprehensive development and credit plans for agriculture and rural sectors.
NABARD provides and regulates credit and offers services that help rural industries and communities, particularly by promoting research and development in these areas.
Therefore, the full form of NABARD is crucial because it signifies the institution’s mandate in supporting and fostering rural prosperity in India.
Explanation
The full form of NABARD is the National Bank for Agriculture and Rural Development. Established in 1982, it was based on the recommendations of the B.
Sivaraman Committee with the primary purpose of promoting sustainable and equitable agriculture and rural development through effective credit support related to developmental programs, institution building, and other innovative initiatives. NABARD plays a significant role in the financial inclusion policy of India.
It serves as a regulator for cooperative banks and regional rural banks, and it also facilitates them to extend their reach and improve their system and processes. Furthermore, it extends refinancing facilities to eligible financial institutions such as State Cooperative Banks, District Central Cooperative Banks, Regional Rural Banks, and other eligible financial institutions, thereby empowering them to extend more loans to farmers, small business owners, and rural people.
Its core purpose is to uplift and strengthen the economic conditions of the rural areas of India.
Examples of Full Form of NABARD
NABARD stands for National Bank for Agriculture and Rural Development. Here are three real-world examples where NABARD plays a role:
Agricultural Loans: In India, small farmers often lack access to reasonable credit options. They might resort to borrowing from local money lenders at steep interest rates, negatively affecting their eventual profits. NABARD provides loans at reasonable rates, providing capital for farmers to invest in equipment, seeds, and other farming necessities.
Infrastructure Development: In rural areas, infrastructure like roads, bridges, schools, and hospitals are often inadequate or missing. NABARD supports infrastructure projects in such areas, It channels funds from both the government and financial markets for these projects.
Microfinance Support: NABARD plays a crucial role in supporting microfinance institutions (MFIs) and self-help groups (SHGs) in India. By providing them with financial support, NABARD enables these groups to offer microloans to individuals and small businesses in rural areas, promoting rural entrepreneurship and local economic development.
FAQs about NABARD Full Form
1. What is the full form of NABARD?
The full form of NABARD is National Bank for Agriculture and Rural Development.
2. What is NABARD and what does it do?
NABARD is an apex development finance institution in India that has an exclusive mandate of policy planning and operations in the field of credit for agriculture and other economic activities in rural areas in India.
3. Who controls NABARD?
NABARD is under the jurisdiction of Ministry of Finance, Government of India.
4. How does NABARD help farmers?
NABARD provides financial and non-financial assistance to primarily uplift rural communities, developing the rural economy and sustainable farming systems. This includes funding for irrigation, infrastructure, housing etc.
5. How can one take a loan from NABARD?
Individuals cannot take loans directly from NABARD. NABARD refinances the financial institutions that provide the loans. Individual borrowers can get their loans from these institutions.
Related Entrepreneurship Terms
- Microfinance: A term associated with NABARD as it is involved in the promotion and development of microfinance institutions.
- Rural Development: NABARD concentrates on the development of rural areas by providing them financial aid and various agricultural resources.
- Agricultural Finance: NABARD is significantly involved in the financing of agriculture, enabling farmers to grow and thrive.
- Financial regulation: NABARD has the responsibility to regulate and supervise the workings of cooperative banks and regional rural banks.
- Sustainable Development: NABARD enforces policies that promote sustainable development in rural areas.
Sources for More Information
Sure, here are four well-reputed sources where you can gain more information about the full form of NABARD (National Bank for Agriculture and Rural Development):
